In Macroland, Autonomous Consumption Equals 100, the Marginal Propensity to Consume

question 33

Multiple Choice

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Autonomous expenditure equals:

• A)320.
• B)320 + 0.25Y.
• C)290.
• D)290 + 0.75Y.

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Definitions:

Flashbulb Memories

Vivid, detailed memories of significant or emotional events, which seem to be recorded in one's memory just like a photograph.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Distortion

A modification of the original shape or other characteristic of an object, image, sound, or waveform.

Eyewitness Memory

The recollection by individuals of events they have witnessed, especially significant to criminal investigations.